Senegal opposes City of Dakar's bond

Feb 24, 2015

The State of Senegal has filed an application to stop the bond issue.

The city of Dakar, which was planning to raise CFAF20 billion (€30.5 million) on the financial market of the Economic and Monetary Union of West Africa (WAEMU) this weekend, was forced to put its plans on hold.

The State of Senegal has filed an application to the regional council for public savings and the financial market (CREPMF) to oppose the bond issue.

According to NdarInfo.com, the government justified this decision by the entry into force of Act III of decentralisation, which will decrease the budget that the city of Dakar had submitted to investors, because part of this budget is no longer allocated to the town hall, but to the district municipalities.

As a guarantor of up to 50 per cent of the transaction, development agency USAID has initiated a meeting between the Ministry of Finance, the Mayor of Dakar, the International Monetary Fund and the World Bank to find a solution.

This would have been the first bond issued by a municipality within the WAEMU region. It was intended to finance the construction of a shopping center.ADNFCR-2976-ID-801776781-ADNFCR